BAKE SALES FOR TRANSIT—Volunteers used bake sales to highlight funding shortfalls for public transportation. Commuters that bought baked goods also made phone calls to Govs. Schwarzenegger and Blagojevich, asking them to restore funding.

Bake Sales Turn Heads On Public Transit

Campaigns for more and better transit were in full swing around the country. Citizen outreach campaigns in California, Illinois, Massachusetts and Pennsylvania are expected to reach hundreds of thousands of people.

CALPIRG made headlines in three of the state’s major newspapers, thanks to our “Bake Sales for Transit.” The events highlighted the chronic under-funding and low prioritization of transit in the Bay Area.

Curious commuters came for cookies or brownies and ended up making calls to the governor’s office opposing a major diversion of funds originally planned for transit. Though the bill is still under final negotiation, it looks as though CALPIRG will win back a large part of the $1.3 billion slotted for transit and continued funding for plans to build a high-speed bullet train from Los Angeles to San Francisco.

Illinois PIRG was the first state PIRG to adopt the bake sale, attracting attention from radio and TV and generating 129 calls to the governor in less than an hour. Illinois PIRG’s Brian Imus also released a major report, “Finding Solutions to Fund Transit: Combining Accountability and New Resources for World Class Public Transportation.”

Combined Reporting Levels The Playing Field

When the state of Michigan revamped their business tax code, they joined 20 other states in adopting “combined reporting,” a method that prevents companies from sheltering their income from tax levies through out-of-state subsidiaries. By adopting this reform, advocated by PIRGIM, the state PIRG in Michigan, Michigan turned the tide toward combined reporting: 51 percent of the U.S. economy now uses the system.

State PIRG campaigns for combined reporting are under way in Maryland, Massachusetts, North Carolina, Pennsylvania and Wisconsin. WISPIRG has also advocated the reform in a series of letters-to-the-editor in major newspapers. MASSPIRG recruited 60 businesses to sign on in favor of combined reporting and a series of other reforms that would level the playing field between businesses.

Research Helps Defeat Private Road Schemes

Three state PIRGs released reports highlighting the problems associated with irresponsible privatization of toll roads—and all three states saw subsequent victories. New Jersey, Pennsylvania and Texas governors each retreated from their plans to relinquish toll revenue and control over transportation policy to private companies.

The actions of the governors represent a reversal of a national trend exemplified in Chicago and Indiana, where officials accepted large short-term revenue from toll operating companies at the expense of public ownership of their roads. U.S. PIRG opposes private ownership because private companies are more likely to make decisions based on profit than public safety.

In New Jersey, after NJPIRG met with the state’s treasurer, ran a petition drive, and maintained a strong presence in the media, public opinion stiffened against that state’s proposed private road deal. NJPIRG Executive Director Allison Cairo said, “The governor’s pledge was particularly satisfying given that it echoed many points NJPIRG had pushed. The devil will still be in the details, so we’re continuing to watch the governor’s actions.”

In Pennsylvania, PennPIRG was the lead group opposing Gov. Rendell’s plans to sell off the Pennsylvania Turnpike, appearing in multiple media articles on the topic. Victory was declared in late June when the governor shelved the idea.

In Texas our position paper established TexPIRG as the authority on tollroad privatization in what is sure to be a continuing battle. Legislators overrode Gov. Perry’s veto and placed a moratorium on similar road deals. Various forms of toll road privatization have been proposed in 24 other states, and U.S. PIRG’s Senior Analyst for Tax and Budget Policy, Phineas Baxendall, reports that we’ll continue to be on the lookout for bad road deals.